Intermediary Proxy Architecture For Instantaneous Monetary Transfer
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Solution Overview
Problem
Current fund transfer systems between different banks often result in delays, especially when transfers are made outside of the sender's bank, as they require multiple bank verifications and exchanges, leading to longer processing times for recipients.
Innovation Solution
A method and apparatus that utilize an intermediary and a proxy with an account at the recipient's bank to facilitate fast transfers by initiating an electronic transfer from the intermediary's bank account to the proxy's account, which then funds the recipient's account, while the sender's bank account reimburses the intermediary or another intermediary bank account.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If traditional interbank transfer methods are used, then fund transfer between different banks can be accomplished, but processing time is extended due to multiple bank verifications and exchanges
Solution Approach 1:
The patent introduces a first intermediary account and a second intermediary account as mediators between the sender's bank account and the receiver's bank account. The first intermediary account (at the sender's bank) receives funds from the sender, and the second intermediary account (at the receiver's bank) transfers funds to the receiver. This intermediary structure eliminates the need for complex real-time interbank verifications and exchanges, thereby reducing processing time while maintaining transfer security.
2Adaptability or versatility
If multiple banks are involved in the transfer process, then funds can be transferred between different financial institutions, but delays occur in processing the transfer
Solution Approach 1:
The patent segments the interbank transfer process into two separate intrabank transfers: (1) a first transfer from the sender's bank account to the first intermediary account at the sender's bank, and (2) a second transfer from the second intermediary account at the receiver's bank to the receiver's bank account. By segmenting the process and using intermediary accounts at respective banks, the system maintains interbank transfer capability while converting complex interbank operations into simpler intrabank operations, thereby improving processing speed.
3Reliability
If traditional wire transfer or bank-processed transfer is used, then funds can be transferred between accounts at different banks, but the transfer takes time to be received by the receiver
Solution Approach 1:
The patent performs preliminary actions by establishing intermediary accounts at both the sender's bank and the receiver's bank before the actual fund transfer. The first intermediary account is set up at the sender's bank to receive funds in advance, and the second intermediary account is set up at the receiver's bank to facilitate immediate credit to the receiver. This preliminary setup eliminates delays during the transfer execution phase, ensuring reliable and rapid fund delivery.
Data Source
AI summary
A method, apparatus, and computer readable storage to enable fast transfers of funds from a sender to a receiver even though they have bank accounts at different banks. A proxy is used that has an account at the receiver’s bank so that the proxy can request an intrabank transfer to the receiver which would typically be quicker than an interbank transfer. An intermediary is a party that organizes a set of transfers related to the transaction. The proxy can be paid a payment for serving as the proxy by the intermediary, the intermediary also receiving a transfer of funds from the sender.